Agenda of Council - 11 March 2021

Council Values

Following are the values agreed during the 2019 - 2022 term:

A. Whakautetanga: respect

B. Kōrero Pono: integrity

C. Māiatanga: courage

D. Whakamanatanga: effectiveness

E. Whakamōwaitanga: humility

F. Kaitiakitanga: stewardship

G. Manaakitanga: generosity of spirit

Nelson City Council

11 March 2021

Page No.

Karakia Timatanga

1. Apologies

Nil

2. Confirmation of Order of Business

3. Interests

3.1 Updates to the Interests Register

3.2 Identify any conflicts of interest in the agenda

4. Public Forum

5. Mayor's Report

6. Elected Members' Reimbursement and Expenses Policy 6 - 18

Document number R15881

Recommendation

That the Council

1. Receives the report Elected Members' Reimbursement and Expenses Policy (R15881) and its attachment (A1546381); and

2. Approves the updated Elected Members’ Reimbursement and Expenses Policy (A1546381); and

3. Submits the Elected Members’ Reimbursement and Expenses Policy (A1546381) to the Remuneration Authority for review.

7. Elected Member Travel and Training Budget and Criteria 19 - 22

Document number R21376

Recommendation

That the Council

1. Receives the report Elected Member Travel and Training Budget and Criteria (R21376) and its attachment (A1743623); and

2. Approves the updated Elected Member Travel and Training Budget and Criteria (A1743623); and

3. Confirms the individual councillor travel and training budget at $5,000 for the 2019 - 2022 triennium as outlined in 6.5 of this Report (R21376).

CONFIDENTIAL Business

8. Exclusion of the Public

Recommendation

That the Council

1. Excludes the public from the following parts of the proceedings of this meeting.

2. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Community Housing settlement	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	Roading properties	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Community Housing settlement

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Roading properties

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

Item 6: Elected Members' Reimbursement and Expenses Policy

Council

11 March 2021

REPORT R15881

Elected Members' Reimbursement and Expenses Policy

1. Purpose of Report

1.1 To adopt the Elected Members’ Reimbursement and Expenses Policy, to submit to the Remuneration Authority (the Authority) for review.

2. Summary

2.1 Council has had a policy regarding elected members expenses for many years. In the past two triennia it has taken a whole of triennium approach. The policy due to be considered in early 2020, however due to COVID this review was deferred as the current criteria was appropriate and a delay allowed new members to provide informed feedback.

2.2 Elected Members were asked for feedback in December 2020 and this has been considered in the update. The updated Elected Members’ Reimbursement and Expenses will remain in place until it is reviewed in the next triennium.

2.3 Previously Council was required to submit this policy to the Remuneration Authority for approval. This process was amended in 2018 and the Authority will now review the policy to ensure it complies with the elected members’ allowances determination.

3. Recommendation

That the Council

1. Receives the report Elected Members' Reimbursement and Expenses Policy (R15881) and its attachment (A1546381); and

2. Approves the updated Elected Members’ Reimbursement and Expenses Policy (A1546381); and

3. Submits the Elected Members’ Reimbursement and Expenses (A1546381) to the Remuneration Authority for review.

4. Background

4.1 The Remuneration Authority is the independent body set up by Parliament to determine the remuneration of key office holders such as Judges, Members of Parliament, local government representatives, some individual office holders and board members of independent statutory bodies.

4.2 Allowances are at the discretion of individual councils within the limits set by the Remuneration Authority. Allowances are:

4.2.1 Vehicle Mileage Allowance

4.2.2 Travel Time Allowance

4.2.3 Communications Allowance

4.2.4 Childcare Allowance

The Remuneration Authority’s Determination (the Determination) for 2020/21 can be found here: https://www.remauthority.govt.nz/clients-remuneration/local-government-elected-members/

4.3 Council approved allowances for elected members must be included in the council’s elected members reimbursement and expenses policy and published on its website.

4.4 Councils do not need the Authority's agreement for changes to their elected members’ expenses and reimbursement policy as long as the policy remains within the limits of the current remuneration and allowances determination.

4.5 In 2016 the Remuneration Authority indicated that the policy should align with the guidelines from the Office of the Auditor General regarding controlling sensitive expenditure. These guidelines can be found here: http://www.oag.govt.nz/2007/sensitive-expenditure/.

5. Discussion

Proposed Changes

5.1 The proposed Elected Members’ Reimbursement and Expenses Policy 2020 (A1546381) is attached with track changes showing suggested updates from the previous version (2016-2019). Minor editorial changes were made to update titles and to provide more clarity on the administration of the expense claims.

5.2 Additional clauses have been included to align more closely with the wording of the Determination (Section 4.2).

5.3 Section 6.3 allows for the Communications Allowance to be paid in a lump sum at the beginning of each financial year.

5.4 Section 8 Hearing Fees. Previously the Policy, and the Remuneration Authority, separated RMA Hearing Fees and District Plan Hearing Fees. The Policy has been updated in line with the Authority’s Determination to broaden the definition of Hearing Fees and this includes Hearings for any District Plan.

5.5 Section 10.7 outlines the proposed process for approval for expenditure from the funding pool. In the past Council was required to make decisions on funding pool expenditure by resolution. This was unwieldy and limited to the Council meeting schedule so has not been the practice. It is proposed that for efficiency the Mayor and Deputy Mayor assess requests and the Group Manager Corporate Services approves the purchase order.

5.6 Section 10.15.1 has been updated due to the tax liability for Council when refunding gifts for a member being hosted by friends or family.

5.7 Section 10.17.1 has been updated to clarify claiming mileage when choosing to drive to a destination which is usually accessed by flights.

5.8 Section 10.17.2 has been included to clarify that any parking or traffic offences incurred while on Council business will be paid by the member.

5.9 Section 10.18.2 has been included to clarify that Council cannot book travel for a members’ partner or family as this adds to the administrative workload. If travelling with a partner or family members will be able to link flights by contacting the airline.

5.10 Section 13 Mayoral Vehicle, has been included to address reimbursing the Mayor for charging an electric vehicle.

5.11 Section 17, Giving Gifts has been updated to reflect that the Mayor’s Office manages gifts.

6. Options

6.1 Council may choose to adopt the policy or amend the policy so long as the policy remains within the limits of the current remuneration and allowances determination.

7. Next Steps

7.1 The updated Elected Members’ Reimbursement and Expenses Policy will be submitted to the Remuneration Authority for review.

Author: Robyn Byrne, Team Leader Governance

Attachments

Attachment 1: A1546381 Nelson City Council Elected Members Reimbursement and Expenses Policy (track changes) ⇩

Item 7: Elected Member Travel and Training Budget and Criteria

Council

11 March 2021

REPORT R21376

Elected Member Travel and Training Budget and Criteria

1. Purpose of Report

1.1 To review and agree the criteria for elected member travel and training for the remainder of the triennium.

2. Summary

2.1 Council is currently using criteria for travel and training which was determined in the previous triennium. The budget and criteria were due to be considered in early 2020, however due to COVID this review was deferred as the current criteria was appropriate and a delay allowed new members to provide informed feedback.

2.2 Elected Members were asked for feedback in December 2020 and this has been considered in the update. The updated budget and criteria will remain in place until it is reviewed in the next triennium.

3. Recommendation

That the Council

1. Receives the report Elected Member Travel and Training Budget and Criteria (R21376) and its attachment (A1743623); and

2. Approves the updated Elected Member Travel and Training Budget and Criteria (A1743623); and

3. Confirms the individual councillor travel and training budget at $5,000 for the 2019 - 2022 triennium as outlined in 6.5 of this Report (R21376).

4. Background

4.1 The budget for elected members’ travel and training covers travel, accommodation, incidental expenses and registration costs for Council-related attendance at governance training and sector opportunities such as meetings, conferences and events.

4.2 In the last two triennium Council allocated an individual budget for each elected member to allow them to be responsive to opportunities. This approach has worked well and ensured the budget was utilised cost effectively and in line with consistent criteria, while also allowing individual members flexibility in training and meeting options.

4.3 Council must now consider the criteria for travel and training expenditure and if it can be improved, as well as review the budget amongst elected members for this triennium.

4.4 Travel and training budgets do not apply to external appointments to subcommittees or committees, on the basis that these appointees are selected for their existing skills and remunerated on this basis. Where Council is organising any in-house training, or training in relation to any new or amended legislation, appointees may attend with written approval of the relevant governing committee chair or the Mayor. To meet any additional specific training demands, $1,000 per annum has been included in the Long Term Plan budgets.

5. Discussion

Travel and Training Criteria

5.1 A tracked-changed version of the Travel And Training Budget Criteria (Attachment 1, A1743623) have been updated to provide clarity and reflect changes in the Elected Members’ Reimbursement and Expenses Policy where decisions on expenditure from the funding pool are made by the Mayor, Deputy Mayor and Group Manager Corporate Services.

Training Needs Analysis

5.2 Attached for information is a brief checklist for elected members who may wish to perform a self-assessment regarding areas of importance for their role as governors of Nelson City (Attachment 2, A1743884). It is the responsibility of elected members to determine their own training needs. If a member wishes to request further training, this should be raised with the Office of the Mayor as per the Elected Members’ Reimbursement and Expenses Policy.

Training Resources

5.3 Listed below for information are several organisations that offer relevant training for members.

5.3.1 Institute of Directors www.iod.org.nz

5.3.2 Local Government New Zealand (LGNZ) www.lgnz.co.nz

5.3.3 NZ Institute of Management and Leadership www.nzimleadership.co.nz

5.3.4 RMA Making Good Decisions certification www.opusetc.co.nz/making-good-decisions

6. Budget allocation

6.1 The total travel and training budget for this triennium is $130,290. This does not include induction costs as they were covered under a separate cost code.

6.2 Travel and training has been allocated following the current criteria and to date $31,000 has been spent, however it can be re-allocated should Council alter its direction for budgets and criteria for this triennium.

Mayoral budget

6.3 The Mayor has a higher travel and training budget allocation, recognising the greater demands of the role. A separate budget of $24,000 is allocated for the Mayor’s role with Local Government New Zealand and includes the following proposed programme:

	$ per year
LGNZ Zone 5 and 6 meetings – 2 per year	$1,000
LGNZ Regional Sector meetings – 4 per year	$2,000
LGNZ Metro Sector or Rural & Provincial Sector meeting – 3 per year	$1,500
LGNZ Conference	$2,500
Local Government Advisory Group meeting – 1 per year	$500
Central Government Local Government Forum – 1 per year	$500
General travel and training	$4,000

6.4 The estimated annual cost of the Mayor's travel and training is $12,000 per annum, this reflects no change from the previous triennium.

Individual member budgets

6.5 During the two previous triennia members were allocated $5,000 each for travel and training opportunities for the triennium, with an expectation that 50% is spent on conference/sector-related activities and 50% on training. Expenditure varied with some members no budget and some members requesting additional funding from the funding pool. On average, members spent $2,750 of individual budgets ($33,000 of the $60,000 budget).

Budget Summary

6.6 After deducting the Mayor’s requirements as outlined above ($36,000), and individual budgets of $5,000 per member ($60,000), the balance remaining for the triennium, i.e. the funding pool, is $34,290.

Total travel and training budget for 2019-2022	$130,290	% Spend to date
Mayoral budget	$36,000	21%
Member budgets x 12 at $5,000 each	$60,000	Total 12%
Funding pool	$34,290	50%

6.7 Budget expenditure is circulated to members six monthly and then updated on Councils website.

Budget underspend

6.8 Historically the travel and training budget has been underspent, which reflects that Council was not realising the full benefit of elected members developing or maintaining their governance skills, and keeping their sector knowledge current.

6.9 Last triennium, Council spent $109,706 of a total budget of $130,290 (not including induction costs). However, within that overall spend, the Mayor had an additional call on travel ($900) overspend and the funding pool was overspent by $7,900.

Author: Robyn Byrne, Team Leader Governance

Attachments

Attachment 1: A1743623 Elected Members Travel and Training Budget Criteria (track changes) ⇩

Attachment 2: A1743884 Training Needs Analysis for Elected Members ⇩